China Bans Cryptocurrency Mining in Energy Overhaul
Beijing escalates crackdown on cryptocurrency mining, citing environmental concerns and excessive energy consumption.China Bans Cryptocurrency Mining in Energy Overhaul
Beijing has escalated its crackdown on cryptocurrency mining due to concerns over excessive energy consumption and potential environmental damage. As part of a comprehensive strategy for "higher level and higher quality" energy conservation, aligning with China's broader goals of pollution reduction and carbon neutrality, the updated implementation plan targets "virtual currency 'mining' activities."
China Targets Cryptocurrency Mining: Stricter Measures
The Beijing Municipal Development and Reform Commission, in collaboration with 11 other departments, released the updated plan with a specific focus on strengthening monitoring and imposing stricter measures for the classification and rectification of such activities. The objective is to decisively eliminate these operations.
This targeted approach marks a departure from China's previous blanket ban on cryptocurrency trading and mining in 2021. However, analysts caution that it may lead to the relocation of mining operations underground or offshore, posing challenges to complete eradication.
Following the initial ban, numerous Bitcoin mining operations moved to the United States, underscoring the global nature of the industry. Simultaneously, the United States is addressing the environmental impact of cryptocurrency mining. The Energy Information Administration, operating under the White House Office of Management and Budget, is initiating a program to collect data on the energy consumption of commercial crypto miners. This initiative aims to comprehend the sector's impact on the national energy landscape and guide future regulations or policies.
The heightened scrutiny on cryptocurrency mining underscores mounting concerns regarding its ecological impact.
